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Added on the 25/03/2019 14:14:09 - Copyright : Wochit
Ending a six-month run of spiraling demand, sales of existing homes in the US contracted in November. It's being read as a signal that rising prices and historically low supply is finally slowing the housing market's rally. According to Business Insider, the National Association of Realtors says home sales fell 2.5% last month to a seasonally adjusted annual rate of 6.69 million. The median price for existing homes fell to a six-month low as well, dipping month-over-month to $310,800 from $313,100. Even so, the pace is still up 25.8% from the year-ago period.
Over the course of his lifetime, between purchases and re-finances, Business Insider contributor Dan Miller has closed on at least ten mortgages. Having learned from his experience, Miller always asks for a very specific document before closing day--whether the lender likes it or not. The document is the HUD-1 statement: a list of all of the charges and credits to be paid by the buyer and seller. Miller says that by inspecting the document beforehand, you can take care of any discrepancies in advance. That way, people won't be pressuring you to sign on closing day. So, feel free to tell your lender and real estate agent that you won't be attending closing unless you've received your final HUD statement!
In March, the US Federal Reserve's lowering of interest rates fueled a housing boom. According to Business Insider, the Federal Housing Finance Agency says that the explosion shows no signs of subsiding. A seasonally adjusted index of prices rose 1.7% in September from the prior month, and prices jumped 7.8% from their year-ago period. Mortgage rates hit their thirteenth record-low of the year last week. The average 30-year fixed-rate mortgage rate fell to 2.72% from 2.84%. However, experts say the good times in the housing market aren't likely to last forever. We expect some moderation in the pace of housing starts in the face of the rapidly escalating health crisis, a faltering recovery, and softening labor market gains. Nancy Vanden Houten, Lead US economist, Oxford Economics
It's an exciting time in the US real estate market, and some are lucky enough to be taking the plunge into homeownership for the first time. But according to Business Insider, it's best to enter the process armed with enough knowledge to make good decisions--financial and otherwise. First, choose your real estate agent and mortgage lender or mortgage broker wisely. Read online reviews and ask around. Even so, do your own research about the process. Second, prepare your financial paperwork. Make sure you have a scanner so you can send it by email, and a system for keeping things on track. Finally, chances are that once you've moved in, you won't have enough money left over to do everything you want all at once. Prioritize your projects, and enjoy your new home!
The price of US housing in the third quarter of 2020 saw the biggest year-over-year jump since 2013. Markets Insider reports the median price for a single-family home rose 12%, mainly fueled by record-low mortgage interest rates. But there's a downside: Not every American is benefitting from the rally. In fact, Q3 saw the proportion of first-time homebuyers drop to just 31%. That's the lowest share in over 30 years. As home prices significantly outpace median family income growth, more Americans have been pushed out of the housing market and have had to delay homeownership.
Going through the mortgage approval process can be tedious, time-consuming, and stressful. But working hard to get a lower interest rate is totally worth it. According to Business Insider, prospective homebuyers should give themselves at least a few months to get prepared for the rigamarole. First, get your credit score up as high as you can. Second, get your debt-to-income ratio as low as you can. Always pay on time, and pay off any credit card balances before applying for a new mortgage. Take at least a six-month moratorium from applying for new accounts as well. Finally, shop around for the best rate that's suitable for your particular situation. Good luck!
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